Sustainable Livelihood SR

Compiled by S.Rengasamy to introduce the concept of livelihood to MSW students specializing in community development

1. Compiled by S.Rengasamy-Madurai Institute of Social Sciences 1
The Sustainable Livelihoods
Framework
•It’s ONE WAY of “organising” the complex
issues surrounding POVERTY
•It’s NOT the ONLY WAY
•It needs to be:
o Modified
o Adapted
o Made appropriate to local circumstances
o Made appropriate to local priorities

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Why an ‘approach’?
It’s about trying to see development
standing in the shoes of the poor
not from the shoes of:
the ‘expert’ or
the ‘service delivery manager’

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'A livelihood comprises the capabilities,
assets (including both material and social
resources) and activities required for a
means of living. A livelihood is sustainable
when it can cope with and recover from
stresses and shocks and maintain or
enhance its capabilities and assets both
now and in the future, while not
undermining the natural resource base'
(Chambers, R. and G. Conway, 1992).

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Livelihood
"A livelihood, on the other
hand, is engagement in a
number of activities
which, at times, neither
require a formal
agreement nor are limited
to a particular trade.
Livelihoods may or may
not involve money. Jobs
invariably do. Livelihoods
are self-directing. .... .
Livelihoods are based on
income derived from
"jobs", but also on
incomes derived from
assets and entitlements. "
Job
"A job connotes one
particular activity or
trade that is performed in
exchange for payment. It
is also a formal
agreement, as
manifested by a contract,
between an employer
and employee...... . A job
can, however, comprise
part of an overall
livelihood, but does so
only to complement other
aspects of a livelihood
portfolio.

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What is a livelihood?
•A livelihood comprises
-- the capabilities,
–assets (material and social)
–activities
required for a means of living.
•Not just the means to survive
but the capability to thrive

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Is simply a tool to help:
oplan new development/adaptation initiatives
oassess the contribution to livelihood
sustainability made by existing activities
It:
oprovides a checklist of relevant issues
ohighlights what influences what
oemphasizes the multiple interactions that
affect people’s livelihoods
The Sustainable Livelihood
Framework -1

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The Sustainable Livelihood
Framework -2
Helps us think holistically about:
oThe things that poor rural households
might be very vulnerable to
oThe assets and resources that help them
thrive and survive
oThe policies and institutions that impact
on their livelihoods
oHow they respond to threats of climate
change
oWhat sort of adaptation strategies are
open to them

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Principles of SLA
• People-centered: beginning by understanding peoples’
priorities and livelihood strategies.
● Responsive and participatory: responding to the
expressed priorities of poor people.
● Multi-level: ensuring micro-level realities inform macro-
level institutions and processes.
● Conducted in partnership: working with public,
private and civil society actors.
● Sustainable: environmentally, economically, institutionally,
and socially.
● Dynamic: ensuring support is flexible and process-oriented,
responding to changing livelihoods.
● Holistic: reflecting the integrated nature of people’s lives
and diverse strategies.

●
Building on strengths: while addressing vulnerabilities.

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Principles -1
•People at the centre
•Holistic analysis
–Not supply driven
•Asset-based analysis
–Build on inherent potential
–Not on weaknesses and gaps
•Focus on outcomes (results)

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Principles -2
If people are at ‘the centre’,
it affects the way services are delivered
•Participatory
–Involves users directly
•Responsive
–Flexible and dynamic
•Multi-agency
–‘Joined-up’ work (Integration)
–Partnerships

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‘PIPS’ effectively determine:
•access (to various types of capital, to livelihood
strategies and to decision-making bodies and
sources of influence)
•the terms of exchange between different types of
capital
•returns (economic and otherwise) to any given
livelihood strategy.
Without a pro-poor and supportive
enabling environment, interventions have
little impact

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SLA and RBA: Complimentary?
•Rights-based perspective:
•focuses on linkages between public institutions
and civil society and, particularly, on
•how to increase the accountability of public
institutions to all citizens.
•The livelihoods approach,
• takes as its starting point a need to
understand the livelihoods of poor people in
context.
•also recognizes the importance of these rights
and of enhancing accountability

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Principles -3
•Focus on institutions
–the ‘rules of the game’
–‘voice’ and ‘choice’
–rights, entitlements, inclusion
–multi-level consistency
–‘micro-macro’ linkages
Focus on sustainability

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Livelihoods assets
Financial
Capital
Natural
Capital
Social
Capital
Physical
Capital
Human
Capital
The Poor

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The SL
Framework
Livelihood
Capital Assets
Human
Social
Physical Financial
Natural
Vulnerability
Context
Livelihood
Strategies
Policies &
Institutions
Government
Socio-Cultural
Livelihood
Outcomes
• + Sustainable use
of NR base
• + Income
• + Well-being
• - Vulnerability
• + Food security

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Sustainable Livelihoods
Framework

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Focussing on the poor
TheThe
PoorPoor

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Livelihood Assets
Financial Physical
Natural
Social
Human
Personal
TheThe
PoorPoor

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Unpacking Policies and
Institutions
Enabling
agencies
Service
providers
Financial
Physical
Natural
Social
Human
Personal
The The
PoorPoor

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Unpacking “Processes”
Enabling
agencies
Service
providers
Financial
Physical
Natural
Social
Human
Personal
The The
PoorPoor

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An Envelope of Action
Enabling
agencies
Service
providers
Financial
Physical
Natural
Social
Human
Personal
The The
PoorPoor

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Strong Envelope – People Less Vunerable
Enabling
agencies
Service
providers
Financial
Physical
Natural
Social
Human
Personal
The The
PoorPoor

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Weak Envelope – People More Vulnerable
Enabling
agencies
Service
providers
Financial
Physical
Natural
Social
Human
Personal
The The
PoorPoor

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Enabling
agencies
Service
providers
Financial
Physical
Natural
Social
Human
Personal
The The
PoorPoor

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The five Capitals /Assets
Land, Water, Wildlife, Biodiversity, Environment, Solar Natural:
Transport, Shelter, Water, EnergyBuilt:
Networks, Groups, Trust, Access to servicesSocial:
Savings, Credit, Remittances, PensionsFinancial:
Skills, Knowledge, Information, Ability to work, HealthHuman:
Examples
Assets/
Capitals

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The five capitals
sHuman capital - skills, knowledge & info., ability to work,
health
dNatural capital - land, water, wildlife, biodiversity, environment
wFinancial capital - savings, credit, remittances, pensions
iPhysical capital - transport, shelter, water, energy, comms
eSocial capital - networks, groups, trust, access to institutions

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Social Capital - Issues
•Much debate centers on the concept of social capital
– one of the key terms in the development lexicon
and the missing link in development ‘the glue that
holds society together’
•Concept attributed to Putnam who identifies three
elements of social relations
–Interpersonal trust, networks and shared norms
•Where these elements function well they enable
people to act together more effectively, make
decisions, formulate policy and gain access to power
and resources
•Proposed that the major obstacle of economic and
social development in the ‘third world’ is ineffective
institutions

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Social capital - critique
•Key critiques of Putnam’s approach are that it
–Devalues political civil society – concentrates on
‘apolitical’ institutions
–Romanticizes associational life
–Deterministic – “path dependent development” –
you either have social capital or you don’t.
–A repackaging of what social scientists have
studied for years with new terms
•social capital equals “Bankspeak”, a term
designed to neutralize and obscure problems
and relations of power (Harriss and Fine)

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Counterpoints
•Hilary argues that the concept of
social capital exposes the limitations
of conventional economic approaches
for understanding economic and social
processes

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What is a sustainable
livelihood?
A livelihood is sustainable when it can:
–cope with and recover from stresses and shocks
–maintain or enhance its capabilities and assets
both now and in the future,
–while not undermining the natural resource base.

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Livelihood Strategies
What do people do?
•Natural-resource based
•Non-NR / off-farm activities
•Migration / remittances
•Pensions and grants
•Intensification vs. diversification
•Short-term vs. long-term

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Livelihood outcomes
What people are trying to achieve with
their assets and strategies
Categories of livelihood outcome
•More income
•Increased well-being
•Reduced vulnerability
•Improved food security
•More sustainable use of the natural resource
base

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Livelihood Outcomes
What are people seeking to achieve?
•More sustainable use of the NR base
•More income
•Increased well-being
•Protect rights
•Recover dignity
•Reduced vulnerability
•Improved food security

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Human Capital
•Health
•Nutrition
•Education
•Knowledge and skills
•Capacity to work
•Capacity to adapt

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Natural Capital
•Land and produce
•Water & aquatic
resources
•Trees and forest
products
•Wildlife
•Wild foods & fibres
•Biodiversity
•Environmental
services

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Social Capital
•Networks and connections
opatronage
oneighbourhoods
okinship
•Relations of trust and mutual support
•Formal and informal groups
•Common rules and sanctions
•Collective representation
•Mechanisms for participation in decision-
making
•Leadership

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Physical Capital
•Infrastructure
•transport - roads, vehicles, etc.
•secure shelter & buildings
•water supply & sanitation
•energy
•communications
•Tools and techology
•tools and equipment for production
•seed, fertiliser, pesticides
•traditional technology

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Financial Capital
•Savings
•Credit/debt - formal, informal, NGOs
•Remittances
•Pensions
•Wages

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The Asset Mix
•Different households with different
access to livelihood “assets/capital”
•Livelihoods affected by:
o diversity of assets
o amount of assets
o balance between assets

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So……..
Human capital
• labour capacity
• no education
• limited skills
Natural capital
• landless
• access to common property resources
Financial capital
• low wages
• no access to credit
Physical capital
• poor water supply
• poor housing
• poor communications
Social capital
• low social status
• descrimination against women
• strong links with family & friends
• traditions of reciprocal exchange
= an extremely reduced “livelihood
pentagon”
Landless
female
agricultural
labourer
Financial
Capital
Social
Capital
Physical
Capital
Human
Capital
Natural
Capital

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Understanding vulnerability
•Moser characterizes vulnerability as
insecurity in the well being of individuals,
households or communities in the face of a
changing environment
–Because people move in and out of
poverty the concept of vulnerability
better captures processes of change
that poverty line measures

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Understanding vulnerability
•Chambers observes that vulnerability
has two sides
–An external side of risks, shocks and
stress
–An internal side of defencelessness
due to lack of means to cope with
damaging loss

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“Vulnerability” Context
•Shocks
–Floods, droughts, cyclones
–Deaths in the family
–Violence or civil unrest
•Seasonality
•Trends and changes
–Population
–Environmental change
–Technology
–Markets and trade
–Globalisation

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Vulnerability Context
The external environment in which people exist
iShocksShocks - - illness,death in the family, disaster-illness,death in the family, disaster-
floods,droughts,cyclones, economic, conflict-violence or floods,droughts,cyclones, economic, conflict-violence or
civil unrest, crop / livestock pests & diseasescivil unrest, crop / livestock pests & diseases
oStressesStresses – – long term trends that undermine livelihood long term trends that undermine livelihood
potential: potential: population, environment-population, environment-declining natural declining natural
resourceresource base base, , climate change, markets and trade- climate change, markets and trade-
inflationinflation, , currency devaluation, structural unemployment, currency devaluation, structural unemployment,
poor poor governance, globalisation governance, globalisation etcetc
aSeasonSeasonalityality- - prices, production, health, employmentprices, production, health, employment

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FP
H
N
S
The Poor
Vulnerability
Context
Shocks
Seasonality
Trends
Changes
“Vulnerability” Context

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Policies, Institutions & Processes
•Policies
•of government
•of different LEVELS of government
•of NGOs
•of interational bodies
•Institutions
•Processes
•political, legislative & representative bodies
•executive agencies
•judicial bodies
•civil society & membership organisations
•NGOs
•law, money
•political parties
•commercial enterprises & corporations
•the “rules of the game”
•decision-making processes
•social norms & customs
•gender, caste, class
•language

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Policies
Institutions
Processes
FP
H
N
S
The Poor
Vulnerability
Context
Shocks
Seasonality
Trends
Changes
influence
Policies, Institutions & Processes

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Livelihood Strategies
Combining:
•the assets they can access
Taking account of:
•the vulnerability context
Supported or obstructed by:
•policies, institutions and processes.
………..………..leading to

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Livelihood Outcomes
Poverty - a “poor” livelihood outcome:
•based on a fragile or unbalanced set of livelihood
assets
•unable to sustain to shocks, changes or trends
•not supported, or actively obstructed by policies,
institutions and processes that do not allow assets
to be used as they might
•livehood options combined in a “bad” or
unsustainable strategy

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The Sustainable Livelihoods
Framework
Policies
Institutions
Processes
Vulnerability
Context
Shocks
Seasonality
Trends
Changes
influence
Livelihood
Strategies
Livelihood
Outcomes
NS
FP
H
The Poor

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Uses
• A guide for people in the analysis of development
practice and issues
• Encourages discussion and probing
• Not necessarily easier to explain but more
complete
• Specifically identifies many features – politics,
rules, social norms, gender/age/class/ethnic issues –
that will help make it more culture specific
• Still not a magic bullet!

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Advantages
•Addresses some of the “grey areas” identified
regarding SL
 Places the poor firmly at the centre – makes people visible
 Suggests the importance of clear definition of who is at the
centre of the analysis
 Unpacks the PIP box – more specific regarding key
institutions and processes – and provides a more practical
approach to analysing institutional and policy issues
 Incorporates political dimension more explicitly
 Helps understand entry points – based on opportunities and
aspirations, possible at different levels (identifying them still
depends on good analysis)

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PRE-SRL SRL
Starting point Resources, needs People
Level of operation Either policy or field levelBoth policy and
field levels with clear links
between them
Conceptions of
poverty
Income-based, simple,
measurable
Multi-dimensional, complex
Sectoral scope Single sector Multi -sectoral
Indicators Specified at outset People and outcome oriented;
negotiated/ developed over time.
Time frame 3 - 5 years Longer
Project size Medium Start small and
grow
Supporting
Research
Production system-based Livelihood
strategy-based.
Action research
Skills needed for
core staff
Technical, policy Managerial, policy, facilitators.
Source: Carney, 1998
How does the SL differ from previous approaches?

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A Sustainable Livelihoods Framework
financial
informationhuman
social physical
natural individual
religion
personal
history
gender
ability &
disability
class &
caste
ethnicity
age
locality
You
controllers
service
providers
relationships
relationships
re la tionships
Influences
Hopes Opportunities
ACTIONS
CHOICES
Livelihood Outcomes
financial
informationhuman
social physical
natural individual
religion
personal
history
gender
ability &
disability
class &
caste
ethnicity
age
locality
You
controllers
service
providers
relationships
relationships
re la tionships
Influences
Hopes Opportunities
ACTIONS
CHOICES
financial
informationhuman
social physical
natural individual
religion
personal
history
gender
ability &
disability
class &
caste
ethnicity
age
locality
You
controllers
service
providers
relationships
relationships
re la tionships
Influences
financial
informationhuman
social physical
natural individual
religion
personal
history
gender
ability &
disability
class &
caste
ethnicity
age
locality
You
financial
informationhuman
social physical
natural individual
financial
informationhuman
social physical
natural individual
religion
personal
history
gender
ability &
disability
class &
caste
ethnicity
age
locality
You
religion
personal
history
gender
ability &
disability
class &
caste
ethnicity
age
locality
religion
personal
history
gender
ability &
disability
class &
caste
ethnicity
age
locality
You
controllers
service
providers
relationships
relationships
re la tionships
controllers
service
providers
relationships
relationships
re la tionships
Influences
Hopes Opportunities
ACTIONS
CHOICES
Hopes OpportunitiesHopes Opportunities
ACTIONS
CHOICES
ACTIONSACTIONS
CHOICESCHOICES
Livelihood OutcomesLivelihood Outcomes